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HomeMy WebLinkAbout2015-405-E ED - Carrboro Community Acupuncture - Business Investment Grant Agreement $10,000 DocuSign Envelope ID: DAA28B73-CB91-446F-A730-9367CAA336F5 ORANGE COUNTY ECONOMIC DEVELOPMENT BUSINESS INVESTMENT GRANT AGREEMENT THIS AGREEMENT, entered into this 4"' day of August , 2015,by and between Orange County ("County"),by and through Orange County Economic Development("Economic Development") and Carrboro Community Acupuncture ("Grant Recipient"). WHEREAS, Economic Development is a County department that aids existing business investment and early-stage venture growth, assists local agriculture and local food systems, and supports entrepreneurial development; and, WHEREAS, Grant Recipient has a project to expand their existing Orange County business; and, WHEREAS, the Grant Recipient was selected to receive the Orange County Business Investment Grant through the procedures duly adopted by Economic Development; and, NOW THEREFORE, the County and the Grant Recipient, for the consideration and under the conditions hereinafter set forth, agree as follows: 1. Approved Grant. Grant funds are provided for the project("Project") described in the Grant Recipient's Grant Application("Application"), dated June 12,2015 and incorporated by reference, subject to this Agreement, the Business Investment Grant Program Guidelines ("Guidelines"), attached as Exhibit A and any additional terms imposed on the Grant Recipient ("Additional Terms") attached as Exhibit B,in that order of priority. 2. Grant Award. Grant funds in an amount of ten thousand dollars ($10,000.00)have been awarded by the Grant Subcommittee described in Exhibit A ("Subcommittee") and shall be released to the Grant Recipient for the approved Project. The grant cannot be assigned or transferred without prior written approval. 3. Responsibilities of the Grant Recipient A. Implementation. The Project shall be implemented in the manner described in the Application. Time is of the essence in the implementation of the Project. B. Use of Funds. Grant recipient shall not use the grant funds for any of the prohibited purposes described in the Guidelines. The grant shall be utilized solely for its intended use, as detailed in the Application, and subject to the Additional Terms. 4. Indemnity. The Grant Recipient agrees to indemnify and hold harmless the County and Economic Development and their officers and employees from any and all claims of actual injury, damage or loss to a person, or real or personal property that results from or is in any way connected to the use of the grant funds. 5. Termination. OCEDbiga July 2015 DocuSign Envelope ID: DAA28B73-CB91-446F-A730-9367CAA336F5 A. In the event of any of the circumstances set forth below(hereinafter referred to as"default"), the Subcommittee may immediately terminate this Agreement: i. Any fraudulent representation on a material matter related to securing and utilizing grant funds under this Agreement. ii. Failure to satisfactorily comply with any provision of this Agreement, any term of the Grant Application, and/or any Grant Program Guideline, as determined by the Subcommittee in its sole discretion. iii. Failure to adhere to the terms of applicable county, state, or federal laws,regulations, or stated public policy. B. In the event of default by the Grant Recipient, the Subcommittee has the discretion to elect to terminate this Agreement,in whole or in part and/or require the Grant Recipient to repay the grant funds within thirty(30) days from written notice or allow the Grant Recipient the opportunity to cure the default. This clause shall not be interpreted to limit the County's or Economic Development's remedies in law or equity. 6. Miscellaneous. A. Governing Law. This Agreement shall be interpreted in accordance with the laws of the State of North Carolina and Orange County. B. Status.Nothing contained in this Agreement shall be construed to create the relationship of principal and agent, or employer and employee,between Grant Recipient and Economic Development or Orange County Government. Grant Recipient understands and agrees that he/she is not authorized to incur any expenses or any liability whatsoever on behalf of the County or Economic Development and has no authority, expressed or implied, to obligate or make representations on behalf of the County or Economic Development. C. Entire Agreement and Signatures. The parties have read this Agreement and agree to be bound by all of its terms, and further agree that it constitutes the complete and exclusive Agreement between the parties unless and until modified in writing and signed by the parties. This Agreement together with any amendments or modifications may be executed electronically. All electronic signatures affixed hereto evidence the intent of the Parties to comply with Article 11A and Article 40 of North Carolina General Statute Chapter 66. IN WITNESS WHEREOF,the Orange County and the Grant Recipient have signed this Grant Agreement, effective on the last date this Agreement is signed by both parties as indicated by the dates set forth under signatures below. "o&-half of the Grant Recipient 7�tivr� �ia�awa�ta 8/5/2015 91489CFF8B8A42B... Date F 8900"dbehalf of Orange County Government IO637994B755E4778/7/2015 ... Date OCEDbiga July 2015 DocuSign Envelope ID: DAA28B73-CB91-446F-A730-9367CAA336F5 ORANGE COUNTY BUSINESS INVESTMENT GRANT PROGRAM Guidelines PURPOSE The purpose of the Orange County Business Investment Grant Program (Grant Program) is to stimulate successful non-farm Business Investment development and expansion in Orange County(County). Farmers should complete the Orange County Agricultural Grant Application. By making economic development grant funds available, the County will be growing its entrepreneurial ecosystem, supporting existing Business Investment and early-stage venture growth, in order to increase jobs, opportunities and grow the commercial tax base in Orange County. Businesses receiving funding through this program will be encouraged to be good corporate citizens as defined in Orange County's Economic Development Strategic Plan and encouraged to employ Orange County residents. The program will provide two types of grants: • Small Grants: Up to$1,500.00 • Large Grants: From $1,500.01 -$10,000.00 GRANT SUBCOMMITTEE The Grant Subcommittee (Subcommittee)will review all applications and make grant recommendations. The Subcommittee will be comprised of 5 members from the Orange County Economic Development Committee. The Subcommittee Chair, elected by the Subcommittee, shall generally monitor the duties of the Grant Program administration; make sure grant proposals are properly prepared prior to their presentations at the Subcommittee meetings; and oversee the preparation of commitment letters to approved grantees, with the assistance of County staff if needed. Grant commitment letters will be signed by the Chair and/or by County staff. The Subcommittee will have the following responsibilities: • Find creative ways to grant funds to stimulate successful Business Investment development and job creation. • Review grant applications quarterly and, determine which applications meet eligibility requirements and whether an eligible application will be approved, approved with conditions, or submitted to the applicant for more information. • Periodically review status of existing grants to determine if funds are being used in the manner in which they were intended, and recommend appropriate corrective action where needed. • Evaluate grant application requirements and make appropriate adjustments as needed to accomplish the objectives of the program. • Conduct annual review of grants and their impact on the County's Business Investment environment. • Provide explanation of why grant was not approved, if requested. GRANT PROGRAM ADMINISTRATION The Grant Program will be administered by a Subcommittee consisting of five members from the Orange County Economic Development Committee. The Subcommittee will meet quarterly to make and facilitate grants. A quorum will consist of 3 voting members of the Subcommittee. County staff may be utilized to service grants, including receiving applications, notifying applicants of the Subcommittee's decision, making payment to recipients, and generating administrative reports. DocuSign Envelope ID: DAA28B73-CB91-446F-A730-9367CAA336F5 DEADLINES • Tuesday, June 30, 2015 by 5:00 pm • Wednesday, September 30, 2015 by 5:00 pm • Thursday, December 31, 2015 by 5:00 pm FUNDING The County will provide funding for the Grant Program through revenues generated from the Orange County quarter cent sales tax. COMMITMENT PERIOD The County will support the Program until funding is exhausted; demand for the Program no longer exists, or until it is no longer financially feasible. ELIGIBILITY • Applicant's business must be located in Orange County in areas zoned appropriately for their use. • Applicants must be business entities whose gross revenues do not exceed $1 million per year. On a case-by- case basis, Grant requests from businesses with revenues exceeding $1 million may be considered by the Subcommittee. • Applicants and their businesses must not have any past due tax, fee, or fine in Orange County. CONDITIONS OF RECEIVING A GRANT • Applicant must fill out a grant application. • Applicant must appear before the Subcommittee for an interview to detail how grant funds will be used, and answer any questions about their business or application. • Each venture receiving a grant must provide an accounting of how all funds were used and key milestones reached by the venture within 180 days of the receipt of the grant. • As a condition of receiving grant funds, Small Grant recipients must commit to the following mentoring period: Amount of Request o Below$1,000 1 hour session* o $1,000- $5,000 3 hour session* o $5,000- $10,000 5 hour session* *unless waived ➢ SCORE Chapel Hill (Service Corps of Retired Executives) 321 W. Rosemary Street, Chapel Hill, NC 27516 (919) 968-6894 https-.//chapelhil l.score.org/ ChataelhillinfoCa)scorevolunteer.orq ➢ SBTDC (Small Business & Technology Development Center) UNC Chapel Hill, 1700 Martin Luther King Jr Blvd Suite 115/CB# 1823, Chapel Hill, NC 27514 (919) 962-0389 htlE://www.sbtdc.org/offices/unc/#sthash.UJQiZWOL.dguf ➢ Launch Chapel Hill (by application) 321 W Rosemary St, Chapel Hill, NC 27516 (919)240-7765 htt2-://www.launchchapelhill.com/ infoCa)launchcha�relhillecom DocuSign Envelope ID: DAA28B73-CB91-446F-A730-9367CAA336F5 ➢ 1789 Venture Lab (by application) 173 '/2 East Franklin Street, Chapel Hill, NC 27514 htt -.//l 739venturelab.com/ 1739managementCa)gmail.com ➢ A mentor approved by the Subcommittee ELIGIBLE USES OF GRANT PROCEEDS • Startup funding. • Working capital or operational funds to be used for a specific purpose. • Purchase of equipment, or machinery. • Expansion of business services or products. • Work force expansion. • Tenant up-fit or leasehold improvements. GRANT PROCEEDS SHALL NOT BE USED FOR THE FOLLOWING • Paying off or down existing bank debt or investor loans • Purchase of equipment or improvement of real estate,which are used or to be used for personal use • Political activities • Owner salary • Speculative ventures (Examples: drilling for gas or oil, commodity futures). • Lending or investment • Real property held for sale or investment • Pyramid sales-distribution plan businesses • Foreign controlled businesses • Private membership clubs COMPLIANCE WITH APPLICABLE REGULATIONS In all cases, grants made from this program must be consistent and in accordance with the following: • All state and local regulations governing the applicant's business. • Terms and conditions established by the Subcommittee for each particular applicant. • Policies established by the Board of County Commissioners dealing with the Grant Program. • Ventures that implement planning and economic development policies which create a balanced, dynamic local economy that promotes diversity, sustainable growth, and enhanced revenue while embracing community values will also be given priority. AMOUNT OF GRANTS Small Grant - Minimum Up to $1,500.00 Grant applications for$1,500.00 or less will have a separate and simplified application. Large Grant— Maximum Up to $10,000.00 Grant applications for$1,500.01 or more will require additional financial information and documentation of how grant proceeds will be used. Should market conditions change, or in the event of an applicant with extraordinary conditions, a grant amount exceeding the maximum may be considered by the Subcommittee. All grants are subject to availability of funds. DocuSign Envelope ID: DAA28B73-CB91-446F-A730-9367CAA336F5 GRANT APPLICATION GUIDELINES Small Grant Application Requirements Large Grant Application Requirements $1,500.00 or less; 2 - 3 pages) $1,500.01 - $10,000.00; 8 - 15 pages) Business Information: Business Information: 1. Business Name/DBA 1. Business Name/DBA 2. Street Address/Mailing Address 2. Street Address/Mailing Address 3. Date Established 3. Date Established 4. Number of Employees 4. Number of Employees 5. Business phone number 5. Business phone number 6. E-mail address 6. E-mail address 7. Tax ID/Employment Identification Number 7. Tax ID/Employment Identification Number 8. Primary bank Business Financial Information: 9. Accounting firm 8.Annual Sales for the past 3 years (if applicable) 10.Attorney 9. Business Financial Statements (for 3 years, if applicable) Business Financial Information: 10. Last 3 Year's Business Tax Returns (if applicable) 11.Annual Sales for the past 3 years (if applicable) 11. Current Business Checking Account Balance 12. Business Financial Statements (for 3 years, if 12. Balance In Other Accounts applicable) 13. Existing Business Debts 13. Last 3 Year's Business Tax Returns 14. 250-500 Word Description Of Business (if applicable). (When &where it was started, market, target 14. Current Business Checking Account customer, future plans, etc.) Balance 15. Balance(s) In Other Accounts Business Financial Information: 16. Existing Business Debts 15.Amount of Grant Requested & Detailed Use of How Funds will be used. Description of Business Operations: 17. Detailed Written Business Plan (5-10 pages)or PowerPoint Pitch Deck Grant Use Details 18. Amount of Grant Requested & Detailed Use of How Funds Will Be Used (2-3 pages) SUGGESTED SMALL GRANT GUIDELINES Use of Funds- Priority will be given to ventures demonstrating a clear need for grant funds to grow their business, hire additional staff, grow the commercial tax base, and/or create a significant social and economic impact in the County. SUGGESTED LARGE GRANT GUIDELINES High Potential Founders-Although all applicants will be considered, business owners who exhibit the following characteristics will be given priority: a. Have a thorough understanding of their market b. Have assembled a talented team c. Have a passion for building their venture in Orange County High Potential Ventures - Priority will be given to "growth"ventures capable of expanding rapidly, renting office space in Orange County, and hiring Orange County employees. Use of Funds- Priority will be given to applicants demonstrating a clear need for grant funds to grow their business, hire additional staff, grow the commercial tax base, or create a significant social impact in the County. DocuSign Envelope ID: DAA28B73-CB91-446F-A730-9367CAA336F5 PROCEDURES 1. Applicants will be referred to the Orange County Economic Development (Department)website where they will complete and submit their application. Applications (with required documents) should be submitted via: • email: edcmail(cDorangecountync.gov • mail/deliver: Orange County Economic Development 131 W. Margaret Lane, Suite 205 Hillsborough, NC 27278 2. Applicants will be provided interview dates and times no later than two weeks prior to the Subcommittee's next meeting date. 3. County staff will provide completed applications to the Subcommittee for their review no later than three weeks prior to its next scheduled meeting. 4. At its scheduled quarterly meeting, the Subcommittee will discuss the strengths and weaknesses of complete grant application(s) and decide whether or not to take action on the request, based on the information provided. 5. The Subcommittee shall approve, deny or request additional information from the applicant. They will submit determinations in writing to County staff. 6. The applicant will be informed in writing by County staff of the Subcommittee's decision to deny, grant, grant with condition, or seek more information. If the Subcommittee denies a grant request, it shall provide a copy of the score sheet(s) to the applicant. 7. Should the Subcommittee deny an application; the Subcommittee will not consider any applications from that applicant for at least six months. Should an applicant think that their application has been improperly denied, then the applicant may notify, in writing, the Subcommittee. The notice to the Subcommittee shall state why the applicant thinks the grant should be approved. The application shall then be given further consideration by the Subcommittee and its decision is final. 8. At its discretion, the Subcommittee may impose any additional terms to a grant request. The Subcommittee may require an itemized budget detailing the proposed use of grant funds. 9. Applicants agree to utilize grant funds for their intended use. Each venture receiving a grant must provide an accounting of how all funds were used, or will be used, and key milestones reached by the venture within 180 days of the receipt of the grant. 10. As a condition of receiving grant funds, Small Grant recipients must commit to a mentoring period as detailed above (CONDITIONS OF RECEIVING A GRANT) unless waived by the Grant Subcommittee. 11. If an applicant fails to complete items #9 and #10 in a timely manner, the County has the right to require all grant funds back from the applicant, and may initiate legal proceedings against the applicant. 12. The Subcommittee shall provide annual reports to the Economic Development Department and the BOCC of the number of grants requested, approved and denied, and a 2-3 page written analysis of the program's success metrics to date. 13. Documents, including but not limited to financial statements, business plans, customer and supplier lists, description of inventory or assets, contractual obligations and existing liabilities, submitted during the application process shall be treated as confidential information.